Budgeting project proposal

Introduction to Financial Concepts in Python

Dakota Wixom

Quantitative Finance Analyst

Project proposal

Your budget will have to take into account the following:

  • Rent
  • Food expenses
  • Entertainment expenses
  • Emergency fund

You will have to adjust for the following:

  • Taxes
  • Salary growth
  • Inflation (for all expenses)
Introduction to Financial Concepts in Python

Constant cumulative growth forecast

What is the cumulative growth of an investment that grows by 3% per year for 3 years?

import numpy as np
np.cumprod(1 + np.repeat(0.03, 3)) - 1
array([ 0.03, 0.0609, 0.0927])
Introduction to Financial Concepts in Python

Forecasting values from growth rates

Compute the value at each point in time of an initial $100 investment that grows by 3% per year for 3 years?

import numpy as np
100*np.cumprod(1 + np.repeat(0.03, 3))
array([ 103, 106.09, 109.27])
Introduction to Financial Concepts in Python

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Introduction to Financial Concepts in Python

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